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Russia is moving forward with its Pharma 2020 strategy with respect to manufacturing. The goal is to manufacture at least 50% of all drugs locally---and 90% of all medications from the Essential Drug List.

Contract manufacturing organizations (CMOs) are prepping to set up operations in Russia.

Currently, 50% of domestic production—approximately 350 facilities---are run by forms without CMOs.

Dive Insight:

When compared with other emerging markets, Russia is considered a difficult market for CMOs because of its high facility costs, as well as the high costs of utilities and labor. However, many pharma companies are finding their way in through partnerships. Currently, there are 11 good examples of these types of partnerships, including Takeda’s new $96 million plant and Abbott’s $495 million purchase of Verapharm.